CREDIT MARKETS

Treasuries:
Treasury 10-year notes rose after the Federal Reserve said it’s working with counterparties to test a system to withdraw the unprecedented amount of cash injected into the financial system the last two years. The yield on the 10-year note fell 3 basis points, to 3.37 percent. The two and five-year notes stayed relatively flat, with the 5-year note dropping 1 basis point at the close on Monday to 2.33 percent. Investors can’t get enough Treasuries even as the US budget deficit climbs beyond $1 trillion, the government sells a record amount of debt and the dollar declines to the weakest level since August 2008. Bond investors see no reason to abandon Treasuries with the Federal Reserve likely to keep interest rates on hold until at least the second half of 2010.

Commentary/New Issues

Corporate:
$1.5B, TEMASEK FINANCIAL LTD, 4.30%, 10/28/19, AAA/AAA, +95bp

ABS:
Nothing

Agency:
Nothing

The fixed income offerings mentioned above are for informational purposes only. Toussaint Capital Partners, LLC, member FINRA/SIPC, and/or its affiliates may be a participant in the offerings mentioned and therefore offerings will be subject to availability.
All statistical data is sourced from Bloomberg Financial Markets New Issues larger than $250mm.